4. Segmental information
Business segments
The Executive Board is deemed the chief operating decision maker within the Group. For management purposes, the Group is currently organised into two operating segments; Ferries and Container & Terminal. These segments are the basis on which the Group reports internally and are the only two revenue generating segments of the Group.
The Ferries segment derives its revenue from the operation of combined RoRo passenger ferries and the chartering of vessels. The Container & Terminal segment derives its revenue from the provision of door-to-door and feeder LoLo freight services, stevedoring and other related terminal services.
Segment information about the Group’s operations is presented below.
Ferries | Container & Terminal | Inter- segment | Total | |
|---|---|---|---|---|
€m | €m | €m | €m | |
Revenue | ||||
2019 | ||||
External revenue | 204.2 | 153.2 | - | 357.4 |
Inter-segment revenue | 8.2 | 1.2 | (9.4) | - |
Total | 212.4 | 154.4 | (9.4) | 357.4 |
2018 | ||||
External revenue | 188.1 | 142.1 | - | 330.2 |
Inter-segment revenue | 8.1 | 1.2 | (9.3) | - |
Total | 196.2 | 143.3 | (9.3) | 330.2 |
Inter-segment revenue is at prevailing market prices. The inter-segment revenue in the Ferries division in 2019 of €8.2 million (2018: €8.1 million) primarily relates to container vessels which are on time charter to the Group’s container shipping subsidiary Eucon.
Revenue has been disaggregated into categories which reflect how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. As revenues are recognised over short time periods of no more than days, a key determinant to categorising revenues is whether they principally arise from a business to customer (passenger contracts) or a business to business relationship (freight and charter contracts) as this impacts directly on the uncertainty of cash flows.
Ferries | Container & Terminal | Total | ||||
|---|---|---|---|---|---|---|
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |
€m | €m | €m | €m | €m | €m | |
Revenue | ||||||
Passenger | 112.7 | 109.2 | - | - | 112.7 | 109.2 |
Freight | 86.2 | 76.8 | 153.2 | 142.1 | 239.4 | 218.9 |
Chartering and other | 5.3 | 2.1 | - | - | 5.3 | 2.1 |
Total | 204.2 | 188.1 | 153.2 | 142.1 | 357.4 | 330.2 |
For the year ended 31 December 2019 €338.8 million was recognised over time (2018: €312.0 million) and €18.6 million was recognised at a point in time (2018: €18.2 million). No single external customer in the current or prior financial year amounted to 10 per cent or more of the Group’s revenues.
Ferries | Container & Terminal | Total | ||||
|---|---|---|---|---|---|---|
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |
€m | €m | €m | €m | €m | €m | |
Result | ||||||
Operating profit | 36.4 | 34.2 | 13.6 | 12.1 | 50.0 | 46.3 |
Finance income | 0.1 | 0.2 | - | - | 0.1 | 0.2 |
Finance costs | (2.0) | (0.6) | (1.5) | (0.4) | (3.5) | (1.0) |
Non-trading items | 14.9 | 13.7 | - | - | 14.9 | 13.7 |
Profit before tax | 49.4 | 47.5 | 12.1 | 11.7 | 61.5 | 59.2 |
Income tax expense | (0.4) | (0.5) | (0.9) | (0.9) | (1.3) | (1.4) |
Profit for the financial year | 49.0 | 47.0 | 11.2 | 10.8 | 60.2 | 57.8 |
Statement of Financial Position | ||||||
Assets | ||||||
Segment assets | 391.1 | 334.4 | 89.8 | 55.2 | 480.9 | 389.6 |
Cash and cash equivalents | 79.8 | 94.5 | 31.1 | 30.2 | 110.9 | 124.7 |
Consolidated total assets | 470.9 | 428.9 | 120.9 | 85.4 | 591.8 | 514.3 |
Liabilities | ||||||
Segment liabilities | 34.6 | 31.9 | 29.4 | 24.5 | 64.0 | 56.4 |
Borrowings | 183.3 | 204.3 | 56.6 | 0.7 | 239.9 | 205.0 |
Consolidated total liabilities | 217.9 | 236.2 | 86.0 | 25.2 | 303.9 | 261.4 |
Other segment information | ||||||
Capital additions | 43.8 | 79.1 | 2.0 | 3.5 | 45.8 | 82.6 |
Right of use asset additions | - | - | 12.5 | - | 12.5 | - |
Depreciation and amortisation | 30.8 | 19.4 | 6.0 | 2.7 | 36.8 | 22.1 |
Ferries | Container & Terminal | Total | ||||
|---|---|---|---|---|---|---|
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |
€m | €m | €m | €m | €m | €m | |
Operating expenses | ||||||
Fuel | 34.7 | 33.7 | 14.6 | 14.5 | 49.3 | 48.2 |
Labour costs | 25.1 | 24.4 | 7.5 | 6.7 | 32.6 | 31.1 |
Port costs | 41.9 | 39.7 | 30.9 | 29.4 | 72.8 | 69.1 |
Other costs | 25.6 | 27.6 | 75.9 | 72.3 | 101.5 | 99.9 |
Intersegment costs | (1.2) | (1.2) | (8.2) | (8.1) | (9.4) | (9.3) |
Total operating costs | 126.1 | 124.2 | 120.7 | 114.8 | 246.8 | 239.0 |
Geographic analysis of revenue by origin of booking
2019 | 2018 | |
|---|---|---|
€m | €m | |
Revenue | ||
Ireland | 177.9 | 156.7 |
United Kingdom | 66.7 | 64.3 |
Netherlands | 63.8 | 60.8 |
Belgium | 32.8 | 29.9 |
France | 5.8 | 6.3 |
Other | 10.4 | 12.2 |
Total | 357.4 | 330.2 |
Geographic analysis of location of property, plant and equipment
2019 | 2018 | |
|---|---|---|
€m | €m | |
Property, plant and equipment | ||
Vessels at sea/ assets in transit/ under construction | ||
Vessels | 283.9 | 272.6 |
Containers | 4.4 | 5.8 |
288.3 | 278.4 | |
On Shore | ||
Ireland | 28.1 | 28.6 |
Other | 0.7 | 0.7 |
28.8 | 29.3 | |
Carrying amount at 31 December | 317.1 | 307.7 |
Due to the mobile nature of some of the assets in property, plant and equipment, their location is not always fixed.